What is Peer-to-Peer Energy Trading?

Peer-to-peer energy (P2P) trading is the buying and selling of energy between two or more grid-connected parties. 

Energy exchange between small producers and consumers is achieved in a simple and reliable way. Often the energy is sold in the form of solar energy, any excess energy can be transferred and sold to other users via a secure platform. Peer-to-peer energy trading allows consumers the choice to decide on whom they purchase electricity from, and who they sell it to.

Currently, excess solar energy is exported back to the grid for a small feed-in tariff rate. However, this method is becoming obsolete as more people are looking for flexibility and control in managing how their resources are distributed. With this method, small producers of renewable energy do not receive sufficient profit for producing it, and thus are not encouraged to grow. With Greeneum we want to encourage the growth of these small producers so that more and more of the energy we use is created is encrypted on the blockchain and validated using Greeneum PET protocol and AI algorithms.

The trading of energy is done through a secure platform, often using a technology like blockchain. Blockchain is a database technology that processes and stores information, such as transactions of assets. These assets can be in the form of renewable energy credits, which can be traded through the database. If you become a greeneum member, you can receive these credits. These credits can then be traded through the blockchain network and can even be used to buy products on our marketplace. The products that greeneum has in its marketplace range from solar panels, to wind turbines and all kinds of devices that will be useful to grow your energy production. The more green energy you generate, the more credits you get. With more credits you will be able to trade them or use them in the marketplace. You will be further into green energy trading in a safe and reliable way.

 Peer-to-peer energy and certificates trading platforms such as blockchain will allow consumers to share their excess energy amongst one another and control how it’s distributed through microgrids. Users who both sell and consume energy are called ‘prosumers’. Even if you don’t have solar panels, you can still purchase energy from others.

What are the benefits of P2P energy and certificates trading?

The potential for these innovative technologies has several benefits including:

• Renewable energy production will grow exponentially

• Those without solar panels are still able to access renewable energy at a reasonable price from their neighbours, 

• Producers who sell their excess energy can do so at a price that is more than they’d receive as a feed-in tariff from their retailer.

• Energy does not have to be transported from centrally located power plants, reducing electricity transportation costs.

• Possibility to create renewable energy incentives and carbon offsets

“ According to Aurora Energy, 41.1% of your electricity costs goes towards managing and maintaining the poles and wires that deliver power from generators to customers premises.”

• Energy generation can be created from renewables, which has several benefits alone. 

• Energy can be bought from a known source (which allows you to choose where your energy comes from, e.g. from a specific community project you might like to support).

• Providing a choice for dealing with other consumers and cutting out the middle man (electricity retailers).

Using blockchain, all transactions are public and once on the blockchain cannot be altered in any way creating full transparency.

In this way, the production of renewable energy can be promoted and exchanged in a totally reliable and secure way through blockchain.